Allocations - Titbits

Note:

1)   Due to merger of Rly.Budget with General Budget, all Demands 3 to 13 are now subsumed into Single Demand No.80 - Ministry of Railways.  The erstwhile Demands 3 to 13 are now named as Sub Major Heads (SMH) 01 to 11 under Major Head 3002 - Indian Railways Working Expenses (Commercial Lines) respectively. 

2)   Description of Demand/Minor Head/Sub Head/Detailed Head is given for the purpose of understanding.  Need not be furnished in answer sheets.

3)   Sub Head is not asked, yet furnished herein for perusal.

4)   For attempting these type of Allocation questions, hard copy of Finance Code Volume 2 (F2) is must for preparation.  Click for F2

Allocations / Classifications  - TITBITS

• In view of Swach Bharat campaign, the following activities are more important -
•  08 Demand - Operating Expenses - Rolling Stock & Equipement (08-593) -Expenditure on OBHS- On Board Housekeeping services, CTS -Clean Train Station Scheme, Mechanical coach Cleaning, pest & rodent control treatment or any other activity of coach sanitation.

(Authority: Board's letter no.2014/AC-II/2/2 dated 16.10.2014)�acs no.118 . To view letter - click here

http://www.indianrailways.gov.in/railwayboard/uploads/directorate/accounts/downloads/circular/Compendium_2014/34%20(a).pdf

• 09 Demand - Operating expenses - Traffic - 09-0299 - Cleanliness and Sanitation at Stations.(Authority : Board's Letter No. No.2014/ACII/2/2 dated 03.12.14)-acs no.119)
• http://www.indianrailways.gov.in/railwayboard/uploads/directorate/accounts/downloads/circular/Compendium_2014/39-2014.pdf

Ø Single Demand i.e., Demand No. 12 for two abstracts -  One is Abstract –K for Misc.Working Expenses and another is Abstract –N for Suspense.

Ø Demand No. 03 – General Superintendence and Services  - It covers all Officers and Administrative staff of all departments in GM’s Offices as well as DRM’s offices. 

 Exceptions: 1) CCO- Chief Claims Officer and his establishment - allocated to Demand No.12- Misc Working Expenses.    2) CSC – Chief Security Commissioner or DSC – Divisional Security Commissioner and their establishments – allocated to Demand No.12 – Misc Working Expenses..   3) CMD – Chief Medical Director or Sr.DMO – Sr.Divisional Medical Officer and their establishments – allocated to Demand No.11 – Staff Welfare and Amenities.

Ø The Repairs and Maintenance of Plant & Equipment of all Departments – charged to Demand No.7 – Repairs & Maintenance of Plant and Equipments

Ø Payment of compensation claims – Demand No. 12 – Misc Working Expenses

Ø Court fees and other legal expenses – Demand No. 03 – General Superintendence & Services.  ( 03-164)

Ø Expenditure on Sports & Cultural activities and connected establishment – Demand No. 03 - General Superintendence & Services. ( 03-330)

Ø Conservancy of Rivers  -  Demand No. 04 – Repairs & Maintenance of P.Way & works.

Ø Planting  & upkeep of trees along Railway lines, Station gardens, Staff colonies   - Demand No. 04 – Repairs and Maintenance of P.Way & Works.

Ø Consumable items such as lubricants, carbon brushes, lamps, bolts etc used for coaches/wagons ( by Divisions in Open Line)-  Demand No. 08- Operating Expenses - Rolling Stock.  If the same were used in Workshops, allocated to Demand No. 06- Repairs & Maintenance of Carriages & Wagons.

Ø Repairs to watches, clocks, time recorders, stop watches ( in stations, offices etc)  - Demand No. 07 – Repairs & Maintenance of Plant and Equipments.  Why because all these items are treated as tools & plants as per Railway’s Lingo/jargon.

Ø Payment of Lease charges (of IRFC, etc) – Demand No. 09 – Operating Expenses (Traffic).  Only Interest portion charged to Demand No. 09. The Principal portion of Lease charges should be charged to Plan Head 2200 – Leased Assets under Demand No.16

Ø Demand No. 16 -Plan Head 1300- Restoration of Dismantled lines – abolished by Railway Board recently.   

CLASSIFICATION OF REVENUE EXPENDITURE

Category	Group	Erstwhile Demand No.	Abstract	Name of demand
I.	Policy Formulation and Services Common to all Railways	1.		Railway Board
		2.		Miscellaneous Expenditure (General)
II.	General Superintendence and Services on Railways	3.	A	General Superintendence and Services on Railways.
III.	Repairs and Maintenance	4.	B	Repairs and Maintenance of Permanent Way and Works.
		5.	C	Repairs and Maintenance of Motive Power.
		6	D	Repairs and Maintenance of Carriages and Wagons.
		7	E	Repairs and Maintenance of plant and Equipment
IV.	Operation	8.	F	Operating Expenses-Rolling Stock and Equipment.
		9.	G	Operating Expenses-Traffic.
		10.	H	Operating Expenses-Fuel.
V.	Staff Welfare, Retirement Benefits and Miscellaneous	11.	J	Staff Welfare and Amenities.
		12.	K & N	Miscellaneous Working Expenses and Suspense
		13.	L	Provident Fund, Pension and other Retirement Benefits.
VI.	Railway Funds and payment to General Revenues.	14.	M	Appropriation to Funds.
		15.		Dividend to General Revenues, Repayment of loans taken from General Revenues and Amortization of over Capitalisation.

Note: Abstracts A to L are arranged serially to Erstwhile Demands No. 03 to 13 ( Except Abstract I )

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ENGINEERING CODE (Railways) - IMPORTANT CHAPTERS

ENGINEERING CODE (Railways) - IMPORTANT CHAPTERS

One must be cover up the entire Engineering Code i.e., all chapters for attempting the optional General Expenditure Paper and GRP - General Rules & Procedures.  However, among the total 19 chapters, the following Nine chapters are more important and for quick revision.

Chapter No	Contents	Click the given LINK for ready access
1	Organisation & Administration	chapter 1
6	Investment Planning & Works Budget	chapter 6
7	Estimates	Chapter 7
11	Execution of works	Chapter 11
12	Contracts for Works	Chapter 12
13	Initial Records	chapter 13
14	Initial Account of Revenue & Works Expenditure	chapter 14
15	Expenditure & Budgetary Control	chapter 15
17	Completion of Railway Projects	chapter 17

                                       ~!@#$%^&*()_+\

Codes and Manuals of Indian Railways

for access to 

all codes and manuals of Indian Railways

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Annexure J of Appropriation Accounts - A Power Point Presentation

Annexure j of Appropriation Accounts of Indian Railways from Nageswara Rao M

Difference between Vetting and Concurrence

Difference between Vetting and Concurrence

Vetting:   refers to conforming of a factual correctness of figure or statement of figures.

Examples: Vetting of Briefing Note, Estimates, Purchase Order etc.

Concurrence:  refers to agreeing a proposal in its entirety including the figures given under proposal.

Examples: Concurrence for construction of new bridges, replacement of machinery, etc.

Note: Extract from the comments given by F(X)/Dte in reply to information sought under RTI Act, 2005.

http://rti.railnet.gov.in/rtidata/Scanned/n4192.pdf

How to attempt the with Books question paper of Optionals in Appendix III (IREM) exam - Here is the expert guidance offered by Ms.Usha Raman, Faculty at University of Hyderabad

How to attempt the “With Books” question paper in Appendix III A Examination

(Excerpts from the article “Have  you ever written on open book or take-home examination” by Usha Raman.  The article is published on 08^th April, 2013 in Hindu Newspaper. For full article refer the given link

http://www.thehindu.com/features/education/answers-unlimited/article4588410.ece  )

ü  The questions were designed in a way such that the answers would not be readily available from any single text or source.

ü  Students should apply their own ideas to the questions before they could come with answers in such examinations.

ü  The questions themselves were fairly open-ended, and as such, did not have any one “correct” answer.

ü  A few were excited at the possibility of such open-endedness.

ü  As we progress through higher levels of education, we need to develop the ability to tackle a variety of question formats and test patterns. 

ü  Questions that draw on a combination of information recall and critical thinking, which demand that we draw not only on what has been taught overtly in a course, but also on a broader understanding of issues and also our own experience.

ü  Obviously, these questions do not have a single correct answer.

ü  They may be answered from a variety of perspectives and bring in widely divergent pieces of information.

ü  It’s about seeing for yourself if you are good enough to get to the next level. It’s up to you to set the boundaries of the answer (within reasonable limits of course) and think in unexpected ways. In fact, that is the only expectation—that you will do the unexpected.

(The author teaches at the University of Hyderabad and edits Teacher Plus magazine. 

Email: usha.raman@gmail.com )

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TWFA - Transfers Without Financial Adjustments

T W F A

1990,1995,1997 (with out Books) & 1994 (with Books)                                         5 Marks  - short notes question   

ü Expanded as “Transfers Without Financial Adjustments:”

ü Relates to Adjustment of transfer of Rolling Stock assets from One Railway or Unit to another Railway or Unit.

ü Journal Entry is not required.    Also raising Debits on another unit is Not required.

ü Done only through adjusting into the financial books of the Two Railways or Units by Transfer Entry.

ü The amounts simply added up in the Opening Balances for the year of Unit taking over the asset, and

ü Deducted from the Opening Balances for the year of the Unit surrendering the asset.

ü Purpose/ Advantage  of T W F A  :

1.      To avoid effect on financial accounts and budgeting.

2.     To rectify the progressive balances in respect of the accounts of the previous year already closed.

ü True examples of T W F A are:

A.    When the former State Rlys were integrated with the Indian Rlys during the year 1952, all assets belonging to the former were taken over by the respective zonal Rlys

B.     The existing balances in SRPF transferred to NCSRPF.
                                       
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CAPITAL FUND - An Important short notes/Essay type question

CAPITAL FUND

1995 (with Books)   1997 (without Books)                                          5 Marks  - short notes question   

        Ü  Created w.e.f 1992-93 in pursuance of the recommendation of RCC 1991.

        Ü  Operated as a Minor Head under Major Head 8118.

        Ü  Credits to the Fund are:

A)     Appropriation of the Revenue Surplus after meeting obligations of

§  Payment of Principal as well as Interest on Loan to  D.F.

§  Appropriation of current year D.F.

§  Payment of deferred dividend.

B)      Interest on Capital Fund ( at the rate decided by the RCC)

        Ü  Debits to the Fund are:

 A)     This Fund is utilized to finance expenditure until now charged to Loan Capital , to the extent of balance available under this Head

B)      No separate rules existing for utilizing this Fund usually charged to all Plan Heads (except Plan Heads 11 & 51).

 RATIONALE OF CREATING CAPITAL FUND:

        Ü  To reduce the borrowings from General Revenues (i.e., Loan Capital or Gross Budgetary Support (GBS) from Government).  Because the loan capital  is non -refundable and interest bearing loan.  The Interest is paid in the form of Dividend to General Revenues.  Since Loan Capital is non – refundable, the payment of dividend also perpetual. 

        Ü  Year by year, the GBS (Gross Budgetary Support to Railways is declining. During 1975-76, the GBS is around 75 %.  Now in the year 2011-12, it came down to 34%.

        Ü  Plan Size of the Railways cannot be reduced, since capacity restrictions would endanger the economic progress of the country.   The gap between the requirements and the availability is to be bridged.  The only way is to increase internal resources, that’s why the creation of Capital Fund.

        Ü  No dividend will be paid on the expenditure met from the Capital Fund, as the same is generated from internal resources ( not borrowing from General Revenues).  On the other hand, Interest is credited to the Capital Fund on the balance of the Fund at the end of financial year.  (Rate of interest is equal to the Dividend rate and recommended by RCC from time to time)

        Ü  Total Investments made from Capital Fund till 2010-11 were Rs.38676 crores. That means every year, actual saving of Rs.2320 crores by avoiding dividend payment, since these investments are met from Capital Fund, not Capital. (if assumes dividend rate is 6%).

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RSBY - Rashtriya Swasthya Bima Yojana

RSBY - Rashtriya Swasthya Bima Yojana

Note:

Being the latest  scheme ( In Indian Railways - 2011 year), this may be asked as Short Notes question in Appendix III A Examination.

»   launched by Ministry of Labour & Employment, Government of India in the year 2008.

»  Objective:  Protecting BPL(Below Poverty Line) families & informal sector workers of India from the shocks related to catastrophic expenditures of health by provide Health Insurance cover.

»    A Social Insurance scheme.

»  It is a Smart card based, Paperless and cashless facility.

»  Annual hospitalisation cover up to Rs.30,000 per family of 5 members.

»  Transportation expenses - Up to Rs.1,000 per year - provided in cash - for facilitating travelling to Hospital.

»  Rs.30 is one time registration fees paid by the beneficiaries at the time of registration.

»  Implemented through Health Insurance Companies by empanelling the hospitals throughout the India. Already 12,000 Hospitals are empanelled.

»  Premium paid to the Insurance companies   - 75 % by Central Govt.  and balance 25 % paid by State Govts.

»  Approximate premium is Rs. 350 in 2012 year.

»  No age limit for enrolment into this Scheme.

RSBY -Indian Railways

               Authority: RBE No.12/2011 (Rly Bd. Letter No.2010-E(LL)/AT/USW/1 dated 27.01.2011.

               As part of CSR - Corporate Social Responsibility, Indian Railways extends this scheme to APL (Above Poverty Line) categories in Indian Railways i.e., Licensed Porters, Licensed Vendors & Licensed Hawkers in the year 2011.

               Because, the BPL (Below Poverty Line) categories of people are already covered in this Scheme by Ministry of Labour & Employment, Govt. of India.  But Indian Railways ensure that Licensed - Porters, Vendors & Hawkers under BPL  are covered under RSBY scheme implemented by the respective State Governments or not.

               Main Points - RSBY - Indian Railways

A.    Railways share of premium  is Rs.565 per family or 75 % of Annual premium whichever is less

B.    Remaining 25 % premium - bear by the beneficiaries only, not State Govt. (because people covered under APL category)

C.     Zonal Rlys have to pay full premium one year in advance.

D.    Monitoring Dept. is Commercial Dept by nominating Key field officer at Divisional level and Co-ordinating Officer at Zonal Level.

E.     Implemented through State Nodal Agencies by State Govts.

F.     Accountal of Expenditure:

Abstract K - Demand No.12 - Misc. Working Expenses

Minor Head 600     -          Other Expenses

Sub Head     660     -           RSBY

Detailed Head 661 -          RSBY Premium

                            662 -          Other expenses

                            663 -          Credits for contributions paid by

                                             beneficiaries.

Request: 

Readers are advised to spread awareness of RSBY to the needy persons in Railways i.e., Licensed - Porters, Vendors & Hawkers as well as BPL categories in other sectors (Outside the Indian Railways) as part of our Social responsibility.

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